27) The Millionaire Mindset
I have failed many times. But I am not a failure. Without failing, there is no success. Every time I have failed, I have learned from it and used it as an opportunity to succeed on the next go.
What is the difference between failing and being a failure? Mindset.
I read an eye-opening book by Carol Dweck titled “Mindset” in which she describes the different types of mindsets and how those mindsets affect the decisions we make.
When it comes to achieving success, whether it’s in academics, business, sports, or any other area of life, one’s mindset plays a critical role. Having a growth mindset versus a fixed mindset can make all the difference.
A growth mindset is the belief that one’s abilities and intelligence can be developed through dedication and hard work. Conversely, a fixed mindset is the belief that one’s abilities and intelligence are innate and cannot be changed.
The benefits of a growth mindset are numerous. Here are just a few:
Increased resilience: People with a growth mindset are more resilient in the face of setbacks and failures. They view these as opportunities for learning and growth, rather than as indications of their inherent limitations.
Greater motivation: People with a growth mindset are more motivated to learn and improve. They are driven by a desire to stretch themselves and reach their full potential, rather than by a fear of failure or a need to prove themselves.
Improved performance: People with a growth mindset tend to perform better over time. They are more likely to seek out challenges, learn from feedback, and persist in the face of obstacles. As a result, they tend to achieve more and reach higher levels of success.
Better relationships: People with a growth mindset are more open to feedback and constructive criticism. They see these as opportunities to learn and grow, rather than as personal attacks. As a result, they are more likely to build strong, positive relationships with others.
Greater happiness and fulfillment: People with a growth mindset tend to be happier and more fulfilled than those with a fixed mindset. They are more likely to pursue their passions, take on new challenges, and find meaning and purpose in their lives.
So why is a growth mindset essential for success? In short, success requires learning, adaptation, and growth. No matter what area of life you want to excel in, you will face challenges and obstacles along the way. To overcome these, you will need to be open to feedback, willing to learn from your mistakes, and committed to continuous improvement. These are all hallmarks of a growth mindset.
In contrast, a fixed mindset can hold you back by limiting your beliefs about what you can achieve. If you believe that your abilities and intelligence are fixed, you may be less likely to take risks, seek out new challenges, or learn from your failures. This can ultimately limit your potential and prevent you from achieving the success you desire.
In her book, Ms. Dweck asks a pertinent question: “What are the consequences of thinking your intelligence or personality is something you can develop as opposed to a fixed, deep-seated trait?”
For me, it’s my comfort zone. I don’t have to learn something new. I don’t have to try something new and most of all, there is no fear of failing, so there is no need for a new endeavor. I have constantly struggled to learn new languages. Even though I am multilingual, I make a resolution every year to learn Spanish. I start out buying a new course or a new app, but I never follow through with it. I don’t put the time and effort into learning Spanish and when the end of the year rolls around, I tell myself, “I guess I just don’t have the knack for learning Spanish.” Once I even told my wife that some people are born with the ability to learn languages easily and others are not. That is a fixed mindset.
However, when it comes to investing, my mindset changes. I went from an accounting background to construction, real estate development and back to raising capital. I wasn’t born with knowledge of any of these industries. A lot of time and effort was put into learning the ins and outs and the nuances of each of these industries. There were many disappointments and failures along the way. My first real estate venture in Chicago turned out to be a disaster where I lost money from myself and my business partner. What I learned from that was to network and talk to people who have experience with what I want to do. The more people I talked to, the more I learned of the pitfalls and successes of real estate investing. The more I learned, the more I reflected on my previous mistakes, so I don’t make them again.
In conclusion, a growth mindset is critical for success in any area of life. By embracing the belief that you can learn, grow, and improve over time, you can build the resilience, motivation, and skills you need to reach your full potential. Whether you’re pursuing academic, professional, or personal goals, a growth mindset can help you overcome obstacles, achieve success, and find fulfillment and happiness along the way. Remember, mind over matter.